27 Jul 2022


How Coca-Cola's Business Model Has Changed Over the Years

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Academic level: Master’s

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According to Heraclitus, a Greece philosopher, change is permanent, and it is fundamental to the world. He aimed to descrin ofbe the significance of handling difference among human beings and the organization. Organizations are supposed to transform and implement effective plans to overcome the risks in the economic, social along with the political environment ("Heraclitus, change, and flow," 2008). 

The purpose of this report is to analyze the previous human resource practices, policies, and procedure in Coca-Cola Corporation that should be changed. The reasons for the proposed change management theory will be outlined. The report will recommend the diagnostic tool that can be used to analyze the company's readiness for change. 

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Company Overview 

Coca-Cola Corporation deals with retailing, manufacturing, and marketing beverages that do not have alcohol. It is recognized around the world for its coca cola beverage. It also offers over 500 drinks and non-beverages to more than 200 countries. It was formed in 1892 by Asa Candler. Its main offices are situated in Atlanta, Georgia in America. The current numbers of employees around the world are 139,600 who work in their branches. The company’s brand, coca cola, is leading brand around the world ("Who We Are - The Coca-Cola Company," 2018). 

Coca-Cola Corporation is a company that makes changes to their items and business plans concerning their consumers’ needs and external practices. It is one of the oldest companies in the world. Coca-Cola Company has been changing its internal and external strategies since it was formed. The corporation has utilized change management methods to remain relevant in the market ("Who We Are - The Coca-Cola Company," 2018). 

Analysis of the Current Human Resource Practices, Policies or Procedures 

Coca-Cola Company has responded to the needs of their consumers through developing new products such as diet coke along with coca cola zero. These beverages were manufactured to meet the needs of individuals with health complications. Coca-Cola Corporation also came up with a marketing blender when one of the substitute companies manufactured a beverage that was similar to coca cola. As a result, the company’s sales reduced as a result of customer dissatisfaction. The company overcame this challenge by restoring the older strategies and branding the bottle diet coke (Khurana, 2011). 

Coca-Cola Corporation utilized the concept of organizational change by Kotler to describe the processes of handling change among the employees. Mr. Gouizetta was determined in giving solutions on manufacturing the beverages. He changed the operations and strategies of the company that helped coca cola gain a competitive edge over its competitors. The CEO met the goals of the company through planning and leading all the activities and provided inspirational management to the workers. He appointed Ivester who assisted in reducing the weaknesses and maximizing the opportunities for the company (Khurana, 2011). 

The company gives specialized training to its employees to increase their experience. Coca-Cola Corporation places new employees among the old ones to gain skills that are pertinent to it. They show hospitality to the employees by providing two cups of tea on during the working days. Coca-Cola Company has created favorable working conditions for Asians and Whites to interact ("Who We Are - The Coca-Cola Company," 2018). 

Coca-Cola Company motivates its employees through providing good wages and rewards. The salaries offered to coca cola employees are high and competitive. The company gives bonuses to high performing employees to encourage them to work hard. The structure of wages in the company is categorized into the blue and white collar. The blue collar employees get salaries and commissions. The white-collar workers receive wages and incentives ("Who We Are - The Coca-Cola Company," 2018). 

The current condition of Coca-Cola Company around the world is right. The company is making sales around the world that are successful. In some nation, the company stores are not efficient, and improvements should be made. Coca-Cola should align its performance measures concerning their corporate culture and plans with the assistance of change management concepts. The transformations should take place within the operations along with the management of Coca-Cola Company ("Who We Are - The Coca-Cola Company," 2018). 

Reasons for the Proposed Change concerning the Change Management Theories 

The main reasons for making changes in Coca-Cola Company include: 

  • To make sure that the company remains relevant and succeeds in the market 
  • To make sure that the global opportunities of the company are not eliminated from its past success in the market. 
  • To make sure that all new training and development activities among the company’s employees are consistent and successful as in the past. 

Recommended Changes 

Coca-Cola Company should implement three main changes to make sure it is successful and continues to get new customers include. The company has 139,600 employees and is widely recognized around the world. Diversity training should be given the priority. Diversity training involves providing employees with information of various cultures and mechanisms to increase their exposure. It increases the chances of employees to improve their job skills and knowledge. Employees should carry out their jobs and increase efficiency through the utilization of the diverse thoughts of their colleagues. 

Diagnostic Tools 

Coca-Cola Company can utilize two diagnostic tools to make sure all the parties involved in the change management procedure are included in the plan. The appropriate instruments are Six-box and AKADAR model. The AKADAR model represents awareness, desire, knowledge, ability along with reinforcement. Coca-Cola Corporation will use the AKADAR model to increase interest on transformations, and passion for employees to take part in the change procedure. The AKADAR diagnostic instrument will be helpful in enlightening the employees on the ways to approach the change process and increase the potential of the people to participate in making changes. The tool is essential in encouraging employees who have no confidence in the success of the changes. The six-box model was developed by Marvin Weisbord and comprises of six factors including purposes, structure, rewards, effective mechanisms, relationships, and leadership. The six-box model focuses on employees concerns and gives them a voice to address their issues. The purpose of human resource managers is to retain employees using motivational and legal regulations (Leadersphere Inc., 2008). 

Application of Six Box Tool in Coca-Cola Company 

Source: (Leadersphere Inc., 2008) 


Coca-Cola Company is a well-established company that understands the concept of the business they are operating in. The company merged with independent bottlers and changed the taste of their drinks accounts for its purpose. Coca-Cola is recognized as the best beverage around the world ("Who We Are - The Coca-Cola Company," 2018). 


Coca-Cola has redesigned the organizational structure by dividing the workloads to specific groups to reduce risks. The main structural change was changing from an independent bottler to a company that monitors all raw materials ("Who We Are - The Coca-Cola Company," 2018). 


Coca-Cola has established good relations with the customers and employees. The company has created incentives that will increase employee motivation. The company wants to retain their employees through building good relationships ("Who We Are - The Coca-Cola Company," 2018). 


Coca-Cola rewards employees who perform well, but they should increase their incentive to improve their morale. The company should increase their opportunities for promotion ("Who We Are - The Coca-Cola Company," 2018). 


The executives of the company are highly skilled and organized. The company has established several changes in the past that have been successful due to the high performing managers ("Who We Are - The Coca-Cola Company," 2018). 

In conclusion, the company is ready to make changes in to improve their performance. It has good relationships with the employees which will help in coordination during the change management process. The company needs to improve the rewards of the employees who are responsible for conducting the operations of the company. Coca-Cola Company should implement Lewin’s three-step model including unfreezing, change, and freeze. The behaviors of employees will be changed to reduce their resistance to transformation. The second stage will involve addressing the changes to the employees the managers will give the employees the importance of making the changes. The freezing step consists in sustaining the changes in the company to make sure the stakeholders of the company successfully accept them. 


Khurana A., (2011). Human Resource Management of Coca-Cola. Retrieved on 15 April 2018 from http://www.managementparadise.com/forums/human-resources-management-h-r/213746-human-resource-management-coca-cola.html 

Leaders here, Inc. (2008). Organizational Diagnostic Models Retrieved on 27 Apr. 2018 from http://www.leadersphere.com/img/OrgmodelsR2009. 

Who We Are - The Coca-Cola Company . (2018). The Coca-Cola Company . Retrieved 27 April 2018, from https://www.coca-colacompany.com/careers/who-we-are-infographic. 

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